Jordan completes exit from Chinese mining machinery firm
The Jordan Company, a mid-market private equity firm, has concluded the sale of its holding in Chinese coal mining equipment manufacturer International Mining Machinery (IMM) to Joy Global. Regulatory approval was granted in December to a deal struck several months earlier that will see Joy Global purchase 41% of the company for HK$4.5 billion ($584.6 million).
The global mining solutions provider has acquired 534.8 million shares at HK$8.50 apiece. Coupled with shares purchased during the offer period, Joy Global now owns approximately 69.3% of Hong Kong-listed IMM and has accordingly tabled a cash offer for all remaining outstanding shares.
IMM was originally a state-owned enterprise that produced underground long wall coal mining equipment and provided related services. A Jordan Company affiliate initially invested in IMM in 2006 and then took the firm public in February 2010, raising HK$2.5 billion. The IPO was priced below initial expectations - the first offering document cited a target of HK$3.3 billion - due to weak market sentiment.
The Jordan Company owned 91% of IMM ahead of the IPO and used the event to reduce its holding to 54.6%. In October 2010, the private equity firm sold down 13.46% of its stake for a reported $151 million.
"Since our IMM acquisition, we've completed seven add-on acquisitions and joint ventures that have expanded the company's product and service offerings and have seen IMM emerge as a comprehensive market leader in China," said Thomas H. Quinn, managing principal of The Jordan Company. "From a state-owned enterprise to a growing public company, we have enjoyed working with the management team, both operationally and financially, to position IMM for long-term success."
Mayer Brown and Kirkland & Ellis acted as legal advisors to The Jordan Company.
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